Wall Street recovering after Monday by Zuzana Zelenakova

Financial stocks came up Tuesday after a record drop from the previous day. The Dow Jones Industrial average rose 270 point, that is 3,3 percent to 8,419.09 and thus catching up with 7,7 percent loss from Monday. The US market is currently being swept from side to side by the situation concerning US automakers. While Ford Motor Co. Chief Executive Alan Mulally stated that the company has enough money to go through the next year and might not need to use government rescue package General Motors Corp. needs $12 billion in government loans and Crysler LLC said it needs $7 billion by the end of the year. When it comes to the sales of the automakers in general they all more or less have experienced drop in customer spending. Ford reported 31 percent decline, Toyota 34 percent and finally General Motors Corp. 41 percent. Investors were a bit relieved not only by Ford´s statement but also by the news from General Electric Co., which said that it will most likely be able to pay a dividend. Also the Federal Reserve has had its share in this lift for the investors announcing that the duration of the key programs focused on restoring the financial sector will be extended. "I don't know where the bottom to all this is," said Alexander Paris, economist and market analyst for Chicago-based Barrington Research. "In these kind of markets, all you have to do is get enough confidence to hold your nose and ignore the bad news to send the market higher." The Standard & Poor rose 3,99 percent Tuesday and Nasdaq gained 3,70 percent. But the time has not come yet for too much optimism according to some. "There's too much talk of valuations, people jumping in on the bullish side after a bounce," said Ryan Detrick, strategist at Schaeffer's Investment Research. "And that's not how bottoms form, and that's not going to take this market continually higher."


related story: http://news.yahoo.com/s/ap/wall_street;_ylt=AqsaDsHT2o_uoKwtQaF96i6s0NUE

by Zuzana Zelenakova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

These news are original content from young talents around the world and are selected for you by Chris Cantell.


edited by Beata Biskova

Nothing But Early Hope by Milota Sidorova

Finally it has happened, only proving American economy wasn’t recovering as one might think after five days rally last week. The main index Dow Jones gained in total 1,276 points, the broad index S&P 500 rose approximately 20 percent. According independent observers this equaled a gain of several years with balanced economy. So after all this sky highs, the pull back was more than expected.
The loss was huge. In fact, it’s been one of four major losses in American trading history. Dow Jones plunged more than six hundred points just in September 11, 2001 and in Sep 29, Oct 15 this year.

All of thirty index creating companies declined yesterday and Dow Jones lost totally 679.95 points to hit 8,149 point level. However, considering alarming news from Labor Department about urging unemployment, declining consumer index and manufacturing at its lowest point since 1982 and felling construction, investors couldn’t do much better. Yields on three month Treasury, generally considered as the safest slipped 0.03 percent. It seems like investors will to accept lower gains just to keep the stocks back in safe zone.

Summing events from the last week, there was nothing but Mr. Obama rallying markets in high speed. He has announced members of his economic team, mostly experienced and trusted people, warmly accepted by financials.

Monday meant more than a disaster decline for many of Wall Street bank ‘survivors’. Citigroup that has already announced huge loss last week slipped 22 percent. Also Morgan Stanley and Goldman Sachs lost in average 20 percent each. These were the companies with the best rating. Yesterday shake has pointed on the success of governmental ‘rescue’ plan which actually seems like a bubble.
Nice but for nothing.

And for the markets – poet or maybe just Amy W. could tell – back to black.




related story: http://news.yahoo.com/s/ap/wall_street;_ylt=ApI38ZIiOjyKeqP3bWtf1Zus0NUE

by Milota Sidorova for PocketNews (http://pocketnews.tv)

PocketNews is a new real-time news broadcaster delivering the latest and hottest news right to your pocket ! With global clients who want to be kept up to date, PocketNews is everyone's way of keeping in touch with the World.

These news are original content from young talents around the world and are selected for you by Chris Cantell.

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edited by Beata Biskova